Housing start strength unlikely to last
Canadian home building activity has been gathering momentum, with a 12 percent year-over-year increase in July, but economists say the strength is likely due to builders catching up to robust demand last year, rather than expectations of coming growth.
The Canada Mortgage and Housing Corp. said yesterday overall starts rose to 205,100 units on a seasonally-adjusted annual rate`11.6 percent higher than the 188,900 reported last July and up 4.3 percent from the 196,600 recorded this June.
The pick-up was driven by strong construction on condos and apartment buildings in Canadian urban centres.
`Housing starts rose in July due to an increase in multiple starts in all regions except Quebec,` said Mathieu Laberge, deputy chief economist at the CMHC.
`The multiples sector showed continued strength in Ontario, and a significant increase in British Columbia and in the Atlantic region,` Laberge added.
Home building activity has been increasing through the first seven months of 2011, but starts still are down 4.6 percent from a year ago.
During the first half of last year, the market was rebounding from the recession and buyers were on a tear`prompting an influx of demand and the need to build more units.
Housing starts tend to lag activity in the resale market, and economists believe the recent strong construction activity is the result of increased demand last year.
Read the full article here.
Canadian home building activity has been gathering momentum, with a 12 percent year-over-year increase in July, but economists say the strength is likely due to builders catching up to robust demand last year, rather than expectations of coming growth.
The Canada Mortgage and Housing Corp. said yesterday overall starts rose to 205,100 units on a seasonally-adjusted annual rate`11.6 percent higher than the 188,900 reported last July and up 4.3 percent from the 196,600 recorded this June.
The pick-up was driven by strong construction on condos and apartment buildings in Canadian urban centres.
`Housing starts rose in July due to an increase in multiple starts in all regions except Quebec,` said Mathieu Laberge, deputy chief economist at the CMHC.
`The multiples sector showed continued strength in Ontario, and a significant increase in British Columbia and in the Atlantic region,` Laberge added.
Home building activity has been increasing through the first seven months of 2011, but starts still are down 4.6 percent from a year ago.
During the first half of last year, the market was rebounding from the recession and buyers were on a tear`prompting an influx of demand and the need to build more units.
Housing starts tend to lag activity in the resale market, and economists believe the recent strong construction activity is the result of increased demand last year.
Read the full article here.